Dynatronics Corp. Files Q1 2024 10-Q

TL;DR

Dynatronics Corp. 10-Q filed. Q1 financials out.

AI Summary

Dynatronics Corp. filed its 10-Q for the period ending September 30, 2024. The company, based in Salt Lake City, UT, operates in the Surgical & Medical Instruments & Apparatus industry. This filing provides financial updates for the first quarter of their fiscal year.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Dynatronics Corp., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 0630 — Fiscal Year End (Indicates the end of the company's annual accounting period.)
• 20241114 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• DYNATRONICS CORP (company) — Filer
• SALT LAKE CITY (location) — Business Address City
• UT (location) — Business Address State
• 8015687000 (phone_number) — Business Phone
• 20240930 (date) — Reporting Period End Date

FAQ

Key Financial Figures

• $1,000,000 — 1.0 if excess availability is less than $1,000,000 of the borrowing base . Note 6. Relat

Filing Documents

• form10q.htm (10-Q) — 523KB
• exhibit31-1.htm (EX-31.1) — 6KB
• exhibit31-2.htm (EX-31.2) — 6KB
• exhibit32-1.htm (EX-32.1) — 3KB
• exhibit32-2.htm (EX-32.2) — 3KB
• 0001062993-24-019082.txt ( ) — 2355KB
• dynt-20240930.xsd (EX-101.SCH) — 18KB
• dynt-20240930_cal.xml (EX-101.CAL) — 29KB
• dynt-20240930_def.xml (EX-101.DEF) — 23KB
• dynt-20240930_lab.xml (EX-101.LAB) — 211KB
• dynt-20240930_pre.xml (EX-101.PRE) — 103KB
• form10q_htm.xml (XML) — 186KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2 Item 1.

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets (Unaudited) 2 Condensed Consolidated Statements of Operations (Unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Cautionary Note Regarding Forward-Looking Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 12 Item 4.

Controls and Procedures

Controls and Procedures 12

OTHER INFORMATION

PART II. OTHER INFORMATION 13 Item 1.

Legal Proceedings

Legal Proceedings 13 Item 1A.

Risk Factors

Risk Factors 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13 Item 3. Defaults Upon Senior Securities 13 Item 4. Mine Safety Disclosures 13 Item 5. Other Information 13 Item 6. Exhibits 14

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DYNATRONICS CORPORATION Condensed Consolidated Balance Sheets (Unaudited) September 30, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 278,443 $ 483,918 Restricted cash 50,410 50,410 Trade accounts receivable, less allowance for credit losses of $ 35,072 and $ 48,997 as of September 30, 2024 and June 30, 2024, respectively 3,055,736 3,444,587 Other receivables 513,180 454,390 Inventories, net 5,471,475 5,593,974 Prepaid expenses 461,902 530,356 Total current assets 9,831,146 10,557,635 Property and equipment, net 1,811,941 1,969,413 Operating lease assets 3,024,339 2,831,417 Intangible assets, net 2,845,400 2,999,975 Goodwill 7,116,613 7,116,614 Other assets 435,203 465,505 Total assets $ 25,064,642 $ 25,940,559 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,738,921 $ 2,712,142 Accrued payroll and benefits expense 398,771 566,443 Accrued expense 516,745 725,727 Warranty reserve 117,173 120,677 Line of credit 1,889,715 2,121,667 Current portion of finance lease liability 302,962 302,998 Current portion of deferred gain 150,448 150,448 Current portion of operating lease liability 1,181,581 1,004,808 Total current liabilities 7,296,316 7,704,910 Finance lease liability, net of current portion 1,354,738 1,428,870 Deferred gain, net of current portion 589,254 626,866 Operating lease liability, net of current portion 1,843,528 1,829,608 Other liabilities 185,810 189,861 Total liabilities 11,269,646 11,780,115 Commitments and contingencies Stockholders' equity: Preferred stock, no par value: Authorized 50,000,000 shares; 3,351,000 shares issued and outstanding as of September 30, 2024 and June 30, 2024, respectively 7,980,788 7,980,788 Common stock, no par value: Authorized 100,000,000 shares; 5,8

Business

Business Dynatronics Corporation (the "Company," or "Dynatronics") is a leading medical device company committed to providing high-quality products designed to accelerate optimal health. The Company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. Proposed 2023 Reverse Stock Split On October 9, 2023, the board of directors unanimously approved and recommended that the Company's shareholders (including holders of our Series A 8% Convertible Preferred Stock and Series B Convertible Preferred Stock) approve at our annual meeting of shareholders the adoption of an amendment (the "Amendment") to the Amended and Restated Articles of Incorporation to effect a reverse stock split of the Company's common stock (the "Proposed Reverse Stock Split") at any whole number between, and inclusive of, one-for-five to one-for-ten. On December 7, 2023, during the "2023 Annual Meeting" the shareholders approved a resolution granting the board of directors the authority, but not the obligation, to file the Amendment to effect the Proposed Reverse Stock Split at any time within one year from the date of shareholder approval, with the exact ratio and timing of the Proposed Reverse Stock Split to be determined at the discretion of the board of directors. For additional information about the 2023 Annual Meeting and the Proposed Reverse Stock Split, please see the Company's Definitive Proxy Statement filed with the SEC on October 24, 2023. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the "Condensed Consolidated Financial Statements") have been prepared by the Company in accordance with generally accepted accounting principles in th

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide a reader of our Unaudited Condensed Consolidated Financial Statements and Notes thereto that are contained in this quarterly report, with a narrative from the perspective of management. You should also consider this information with the information included in our Annual Report on Form 10K for the fiscal year ended June 30, 2024, and our other filings with the SEC, including our quarterly and current reports that we have filed since June 30, 2024 through the date of this report. In the following MD&A, we have rounded many numbers to the nearest one thousand dollars. These numbers should be read as approximate. All intercompany transactions have been eliminated. Our fiscal year ends on June 30. For example, reference to fiscal year 2025 refers to the year ending June 30, 2025. This report covers the three months ended September 30, 2024. Results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results that may be achieved for the full fiscal year ending June 30, 2025. Overview Dynatronics is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal he

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